State Agencies Bulletin No. 2245

Subject
Discontinuation of the Salary Withholding Program for Certain Employees
Date Issued
June 25, 2024

Purpose:

The purpose of this bulletin is to provide agencies with information regarding the discontinuation of the Salary Withholding Program for certain employees.

Affected Employees:

Employees whose hire date, rehire date, concurrent hire date (into a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section), or transfer date (from a position assigned to a bargaining unit not previously subject to the Salary Withholding Program to a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section) is on or after 07/01/2024 are not subject to the Salary Withholding Program.

Employees in positions assigned to a bargaining unit not previously subject to the Salary Withholding Program remain exempt from the program.

Background:

Part Q of Chapter 55 of the Laws of 2024 amends paragraph (c) of subdivision 2-a of Section 200 of the State Finance Law and provides for the discontinuation of the Salary Withholding Program for employees hired on or after 07/01/2024. In addition, unions representing the following bargaining units have signed a Memorandum of Understanding and the NYS Legislature has signed letters agreeing to the discontinuation of this program.

  • Civil Service Employees Association
    • BU02 – Administrative Service Unit
    • BU03 – Operational Services Unit
    • BU04 – Institutional Services Unit
    • BU47 – Division of Military and Naval Affairs Unit
  • Public Employees Federation
    • BU05 – Professional, Scientific and Technical Service Unit
  • Unrepresented
    • BU06 – Management Confidential
    • BU13 – Management Confidential SUNY
    • BU18 – Management Confidential ST POL
    • BU46 – Military and Naval Affairs M/C
    • BU66 – Public Employment Rel Brd 0801
    • BU78 – Tug Hill Commission
    • BU79 – Legislative Commissions
    • BU98 – Temporary State Commissions
  • District Council 37
    • BU67 – Rent Regulation Services Unit
  • Legislature
    • BU76 – Leg Inelig M/C Ins 0400-0499
    • BU77 – Leg Elig M/C Ins 0400-0499

The following unions have not signed a Memorandum of Understanding agreeing to the discontinuation of the Salary Withholding Program. Therefore, at this time, employees hired on or after 07/01/2024 into a position assigned to these bargaining units remain subject to the program.

  • Police Benevolent Association of New York State Troopers, Inc.
    • BU07 – State Police Troopers Unit
    • BU17 – State Police Commissioned/Non-commissioned Officers
  • New York State Police Investigators Association
    • BU62 – State Police Investigators Unit

Effective Dates:

The Salary Withholding Program is discontinued for employees who are hired, rehired, concurrently hired (into a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section), or who transfer (from a position assigned to a bargaining unit not previously subject to the Salary Withholding Program to a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section) with an effective date on or after 07/01/2024.

Eligibility Criteria:

Employees whose hire date, rehire date, concurrent hire date (into a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section), or transfer date (from a position assigned to a bargaining unit not previously subject to the Salary Withholding Program to a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section) is on or after 07/01/2024 are not subject to the Salary Withholding Program.

Agencies should continue using the rules in existence prior to the enactment of the amendment for the following employees who remain subject to the Salary Withholding Program:

  • Employees who are hired, rehired, concurrently hired or transferred with an effective date prior to 07/01/2024 into a position assigned to a bargaining unit previously subject to the Salary Withholding Program whose five pay periods of withholding will not be completed until after 07/01/2024.
  • Employees who are retroactively hired, rehired, concurrently hired or transferred with an effective date prior to 07/01/2024 into a position assigned to a bargaining unit previously subject to the Salary Withholding Program.
  • Employees who are hired, rehired, concurrently hired or transferred with an effective date prior to 07/01/2024 into a position assigned to a bargaining unit previously subject to the Salary Withholding Program and who subsequently transfer to another position assigned to a bargaining unit previously subject to the Salary Withholding Program before completing the five pay periods of withholding but after 07/01/2024.
  • Employees who are hired, rehired, concurrently hired or transferred with an effective date prior to 07/01/2024 into a position assigned to a bargaining unit previously subject to the Salary Withholding Program, are placed on an unpaid leave of absence and are returned to the payroll before the end of the fifth pay period but after 07/01/2024.
  • Employees who are hired, rehired, concurrently hired or transferred with an effective date prior to 07/01/2024 into a position assigned to a bargaining unit previously subject to the Salary Withholding Program but the salary withholding is not begun timely.

In addition, no monies withheld as part of the Salary Withholding Program will be repaid as a result of the amendment to Section 200 of the State Finance Law. All monies will be repaid in accordance with the original repayment rules.

Agency Actions:

Agencies must no longer create a salary withholding record on the Additional Pay page using Earnings Code SWP, SWC, SWB or SCO for employees who are hired, rehired, concurrently hired (into a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section), or who transfer (from a position assigned to a bargaining unit not previously subject to the Salary Withholding Program to a position assigned to a bargaining unit no longer subject to the Salary Withholding Program as referenced in the Background section) with an effective date on or after 07/01/2024.

Questions:

Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.